Bitcoin’s (BTC) price is up 3% and trading at $87,000 on April 21 as U.S. stocks plummet in a major selloff.
Bitcoin is marching higher as all three major U.S. stock indices slide lower to begin the trading week, with the blue-chip Dow Jones Industrial Average (DJIA) down 1,300 points and the benchmark S&P 500 index having fallen nearly 4% on the day.
Markets and the U.S. dollar index are plunging on reports that U.S. President Donald Trump is exploring ways to fire Federal Reserve Chair Jerome Powell. However, despite the major downturn in U.S. stock averages, Bitcoin is trading at $87,000, its highest level since April 2 when Trump announced reciprocal import tariffs on more than 100 countries worldwide.
Languishing No More
Bitcoin had been languishing near $80,000 in recent weeks amid ongoing uncertainty around tariffs and trade wars, and amid a flight to safety. But now, it appears that many investors are running back to cryptocurrencies as volatility in equity markets worsens.
Other crypto, such as XRP (XRP), Ethereum (ETH), and Cardano (ADA), were also gaining traction and up 2% or more in early trading on April 21. However, some digital assets gave up their early gains and were trending lower in late afternoon trading.
The rise in crypto prices comes as the U.S. dollar has now declined by 10% in the past three months. Weakness in the U.S. dollar often eases financial conditions, leading to greater risk-taking in financial markets. In addition to crypto, investors also continue to pile into gold, pushing its price to record levels above $3,400 per ounce for the first time.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 15.87% in the last 12 weeks.
